Tinder, one of the leading dating apps is amongst the first to break the Google norms to get its own share of cut rather than letting it go to Google’s pocket. Tinder has very recently introduced a default payment system in its Android app wherein users can directly make payments in the Tinder app, completely skipping the Google play’s payment system.
It basically means that Tinder would retain its share on premium services like Tinder Gold and Tinder Plus, wherein users would be required to directly enter their card details in the Tinder system. Once the card details are entered, the app supposedly defaults the payment method ensuring the next purchase is direct too, definitely cutting down the Google fees.
One drawback that comes with this direct in-app payment is that the users cannot switch back to the Google play, which hardly anyone would want to do. Tinder is quite sure that Google play would not pull out such a high-profile app even after this act.
Users pay for in-app purchases or subscriptions for premium services that they do not get in the regular free version. Google charges up to 30 percent of those in-app subscriptions, which reduces to 15 percent after the first year (not less though). Developers also complained about the fact that sharing of revenue to such percentage leads to unfair competition among apps that offer similar services.
Tinder, although, is not the first app to enable direct payments. Before it, the very famous gaming app- ‘Fortnite’ of ‘Epic’ pulled such stunt too. These apps would remain in the Google play but will not abide by Google’s usual requirement. Google so far is on ‘no comments’ mode.
Justine Sacco, spokeswoman of the Match Group, which is the parent company of Tinder stated this as an ‘experiment’, further adding that Company constantly tests new features and the payment options which is in the benefit of the users’ experience. “At Match Group, we constantly test new updates and features to offer convenience, control and choice to our users.” She also added in the email that – “We will always try to provide options that benefit their experience and offering payment options is one example of this.” said Justine Sacco.
Parallelly, Apple also takes 30 percent of the in-app purchases in all iOS gadgets. It gets its most of the revenue from the Apple music subscriptions which would say $10 per month. But for the same, its competitor Spotify gets only $7 from the subscriptions.
According to news, Tinder alone is estimated to have racked up $497 million of total revenue in Android and iOS in the first half of 2019. Third-party in-app subscriptions add up quite a lot of amount to Google’s revenue which it would not so likely give up on.
Epic and Match are yet the only two companies to have cut the strings free of itself while other apps like Spotify and Netflix are unhappy with the 70-30 model, they are bringing in new updates to fight back.